February 21, 2025

Sedgwick Expands Claims Management with Bottomline Acquisition

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News Summary

Sedgwick has acquired Bottomline’s legal spend management division, enhancing its claims management services with advanced technology and expertise. This strategic move aims to empower clients in the property and casualty insurance industry to make data-driven decisions while managing litigation processes effectively. The acquisition will see around 300 experienced colleagues from Bottomline joining Sedgwick, ensuring the continuation of quality service and innovative solutions for legal bill review and litigation management, ultimately advancing the industry’s capabilities.

Sedgwick Takes a Big Step Forward with Bottomline Acquisition

In exciting news for the property and casualty insurance industry, Sedgwick has stepped up its game by acquiring Bottomline’s legal spend management (LSM) division. This latest move aims to enhance Sedgwick’s already impressive claims management services. With the deal signed, Sedgwick looks to fortify its presence in a field that requires not only expertise but also sophisticated technology to navigate the complexities of legal costs and processes.

A New Era for Claims Management

The acquisition is particularly significant because it brings along a wealth of experience and cutting-edge technology. Bottomline’s LSM division specializes in cloud-based software applications and efficient legal bill review solutions. These tools are essential for various stakeholders in the industry, including carriers, third-party administrators, self-insured entities, and corporate legal departments. By tapping into Bottomline’s technology and resources, Sedgwick is set to enhance its ability to serve clients more effectively.

What This Means for Clients

With the agreement still subject to typical regulatory approvals, Sedgwick plans to run the LSM division as a distinct entity post-acquisition. This is good news for existing customers, as it signals Sedgwick’s commitment to maintaining quality service while expanding its offerings. This strategic direction not only allows for smoother transitions but also ensures that clients receive the very best support they need when it comes to litigation management.

One of the main objectives of this acquisition is to empower clients to make data-driven decisions when managing their litigation processes. The integration of Bottomline’s technology, which includes the innovative Legal-X and Legal eXchange web platforms, will be particularly useful in supporting clients in controlling their litigation expenses.

A Boost in Legal Bill Review Solutions

Clients in the casualty sector will likely see particular benefits from the addition of end-to-end legal bill review solutions. These enhancements promise to streamline processes such as e-billing, case management, reporting, and analytics, giving clients a comprehensive toolset for managing vendor relationships and costs more effectively. In these times where every dollar matters, having robust solutions in place can make all the difference.

Team Transition and Expertise

As part of the deal, Sedgwick is looking to integrate around 300 LSM colleagues from Bottomline into its organization. This transition is designed to maintain the high standards of service that clients expect. By bringing in experienced professionals from Bottomline, Sedgwick can ensure that their clients continue to receive the exceptional support they’ve come to rely on.

The Financial Backstory

On the financial side, Sedgwick has enlisted the assistance of Morgan Stanley & Co. LLC and BofA Securities to serve as financial advisors throughout this process. Additionally, Simpson, Thatcher & Bartlett LLP are providing legal counsel to navigate the details of the acquisition. On the other side of the negotiation, Bottomline is receiving advisory assistance from Deutsche Bank Securities Inc. and legal support from Kirkland & Ellis LLP.

A Look at Sedgwick and Bottomline

For those unfamiliar, Sedgwick is a leading global provider of claims management, loss adjusting, and technology-enabled solutions, employing over 33,000 colleagues across 80 countries. Bottomline, meanwhile, is a well-respected entity with more than 35 years of experience in business payments and cash management. Together, this acquisition might just set the stage for a transformative experience for customers in the insurance and legal landscape.

This is certainly an exciting time for both Sedgwick and its clients as they gear up for a future that’s looking brighter than ever!